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Cultural Shift: Structural diagnosis and culture map at a  Logistics and Transport Mexico-American Company

Project: Structural Diagnosis and Culture Mapping in Logistics and Transportation
Client: TLW Freight México
Duration: October 2022 - April 2023

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TLW FREIGHT MEXICO is a Mexican company specializing in national and international transport services. It has approximately 50 employees, including operational, administrative, and executive staff. This project is designed with a user-centered approach, focusing specifically on the company's internal clients (the employees). The aim is to enhance the employee experience, which is crucial for the overall effectiveness and success of the organization.

Proposal

The project proposal for TLW FREIGHT MEXICO focused on diagnosing and designing service improvements in 2022. It addresses organizational crisis resolution, encompassing various areas such as client profiling, internal and external communication, dependence on the company's founder, territorial expansion, and updating organizational profiles. The proposal highlights the importance of a human-centric approach, employee experience, and the implementation of automation and decentralization. The project is structured into multiple phases, including diagnostics, project design, research, policy design, training, and implementation, with an emphasis on employee engagement and satisfaction to drive organizational success.

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You can see the proposal here.

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Brief Description and Objectives

  • Description:


About the Company:
TLW Freight México is a Mexican company specializing in national and international transport services. It has 100 employees, including operational, administrative, and executive areas.

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Project Purpose:
The company's management intends to implement a Business Intelligence innovation project. Prior to starting this innovation project, it's necessary to conduct a diagnostic of the company to identify strengths, opportunities, weaknesses, and threats. This will help understand the needs and risks that the project will address. Without knowing the company's current standing, any advancement efforts could be wasted.

 

  • Objectives:

The project's goal is to DIAGNOSE THE COMPANY:

  1. Identify the current structure of the organization.

  2. Define the current company culture, its implications, and risks.

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  • Scope:

Culture map of the whole organization (3 sites: Jalisco (MX), Laredo (EUA), San Diego (EUA))

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This research will enable us to achieve the following points:

  • Empirically demonstrate the organizational structure based on the flow of information and interactions identified during data collection.

  • Create the current cultural map of the company and its implications.

The data from this study are limited to research on a company in the logistics and transportation services sector. Therefore, the results will be applicable to the specific reality of this organization and cannot be used to generalize findings to other companies in the same or different industries.

There are limited prior investigations related to engagement and organizational culture in international comparative cultural contexts, which restricts the availability of references for this study.

The study is non-experimental, making it impossible to manipulate variables to analyze possible variations. Furthermore, it is explanatory and does not address the influence of transient factors that could affect the results or allow for the visualization of variations when manipulating controllable aspects applicable to a portion of the population.

The cross-sectional nature of the research prevents a detailed study of how the sample changes and fluctuates over time, allowing for conclusions only at a given moment.

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  • How Might We:

How might we effectively map and enhance the organizational structure and culture of TLW Freight Mexico to support its transition to Intelligent Business?

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Hypothesis 1: If we understand the organizational structure that defines TLW Freight Mexico's users, we can identify the values, and therefore, behaviors and attitudes that shape the company's culture.

Research Question 1: What are the real dynamics within the organizational structure of the company and how do they influence its culture?

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Hypothesis 2: If we involve users directly in the process of transforming the company with the current culture, resistance may be experienced from the user when demanding an increase in operational capacity.

Research Question 2: What is the ideal culture for the company to achieve its business objectives without compromising operational capacity?
 

Hypothesis 3: If TLW Freight Mexico has a properly trained team in the operating system, the crossover to the USA will be facilitated.

Research Question 3: Is the company's current operating system suitable for its growth, including the crossover to the USA?

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What I Discovered and Learnt (In progress)

  • Methodologies: 

DEVELOPMENT OF THE THEORETICAL FRAMEWORK

Review of available literature on the topic:

  • Analysis of research background.

  • Identification of the main theories.

Definition of methodology:

  • Type of research: Mixed (Applied and Field).

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Engagement Models

There is evidence of the evolution of the engagement construct from a perspective that studies factors related to working conditions to more recent research, which shows an integrative approach oriented towards the individual (Bakker and Demerouti 2013, Hobfoll et al. 2003). 

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Personal Factors

Author: Hobfoll (2001) Model: Conservation of Resources Theory COR (2001) Description: This model explains how individuals deal with stress through resources. It presents the individual as a manager of their own resources, understood as those objects, personal characteristics, conditions, or energies that are valued by individuals and can be potentially motivating in themselves by creating, maintaining, and accumulating them (Hobfoll 2001).

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Author: Ouweneel et al. (2012)

Model: Impact of personal resources on engagement (2012)

Description: This model proposes a reciprocal relationship between positive emotions and personal resources; that is, employees who experience positive emotions develop better job-related skills.

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Organizational Factors

Authors: Demerouti et al. (2001), Bakker et al. (2006)

Model: Job Demand-Resources Theory JD-R (2006)

Description: Following the JD-R model, the authors considered that job resources have a motivational role and are more beneficial if one wants to maintain engagement in conditions of high work demands.

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A research and diagnosis of the company's organizational structure were conducted, taking into account various factors such as hierarchy, power distribution, and the flows of information and communication. Additionally, interviews were carried out to gather information on internal communication, policies and procedures, hiring practices, and employee training and development programs.

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The methodology of Simon Sagmeister's organizational culture map was used to gain a complete understanding of the company's culture, as well as the map of communication flows among stakeholders.

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The Self-Reported Well-being Survey (BIARE), validated by INEGI, was used as a tool to measure people's perception of their well-being, regardless of the type of survey used.

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Communication plan: 
 

We will also use the UX (User Experience) perspective for the communication plan because it focuses on how users perceive and interact with the message. The UX perspective facilitates clarity, ease of use, and visual appeal in communication.

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By considering the UX perspective, our goals are to improve the effectiveness and efficiency of the message, ensuring that it reaches users clearly and attractively. We aim to increase the likelihood that the message will be remembered and have a lasting impact.

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UX Objectives:

  1. Ensure that users are informed about the days and times when their participation is required.

  2. Provide users with clarity regarding the project's objectives.

  3. Ensure that the project's voice is distinct from that of TLW Freight MX.

  4. Keep users informed about what is happening.

  5. Motivate and inspire users, helping them see change as an opportunity.

  6. Give users a sense of progress during implementation.

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Success Metrics/KPIs: Information to be collected about users includes:

  • Attendance at interviews.

  • Attendance at focus groups.

  • Response through messages.

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Scales/Documents/Statistics to be used:

  1. Ignored messages.

  2. Clicks on the form link.

  3. Number of participations in interviews.

  4. Number of attendances at focus groups.

  5. Number of reactions to messages.

  6. Number of responses per message.

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Journey map in MIRO

Artefacts 

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Focus Group:

Presentation

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Final Delivery:

 Cultural and organizational diagnosis

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  • Discoveries:

Benchmarking - Findings

  1. Industry leaders in logistics and transportation often communicate their advancements in digitization and process innovation, unlike most companies in the sector.

  2. Sustainability is a trend among the major players in the industry. Leading companies include sustainability as part of their value proposition.

  3. Partnerships and involvement with innovation and technology programs are trends among the top logistics and transport companies globally.

  4. Mexico's logistics sector is struggling with an aging workforce and a lack of interest from new entrants. Demand exceeds the supply of logistics professionals.

  5. Logistics transport companies have shifted priorities from focusing on operational costs to focusing on end-consumer satisfaction.

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According to the report "Challenges and Trends in the Logistics Sector", the main obstacles are in the areas of Infrastructure (10%), processes (15%), human capital and talent (15%), information and communication technologies (24%), and government management (36%).

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Challenges and Opportunities

Regaining the trust of employees

  • After several initiatives without follow-up, employees require continuity and consistency in new initiatives that directly benefit them in the short term. Simultaneously, it is necessary to refresh mutual commitment.

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Designing a growth plan for each profile in the company

  • What frustrates most of the staff is the lack of upward mobility within the current organizational chart.

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Updating processes with the collaboration of neighboring areas

  • What frustrates most of the staff is the lack of upward mobility within the current organizational chart.

  • Prioritize the change initiatives for 2023 collectively.

  • Remove frustration and anger from the business system by actively listening and redesigning growth plans that, in turn, drive the company's growth.

  • Redesign the employee experience based on the cultural map: Continuous training program.

It is required to:​

  • Co-create a growth and benefits plan.

  • Co-create community engagement plan.

  • Co-create the end of the experience.

  • Co-create a program for former employees.

  • Co-create and publish a delegation map.

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Conclusions

Mission is impotent as long as it exists only in an individual's mind. Only when the collective believes in the higher purpose, can everyone trust each other. At the same time, a common purpose creates a common identity.

 

Differences fade into the background when people pursue a common mission.

Cultural Engineering and Mechanics TLW takes pride in its long and successful history. A family-owned company, it now employs nearly 100 people, with two-thirds working at the company's original headquarters and the rest in branches in the border area with the USA. The lack of purple values provided the company culture with a base that requires support. The staff wants to be part of the company's growth, and they can achieve this by working in trust at all levels. The turnover rate is stable with 20 to 25% of vacancies available. In past years, mutual support and community spirit became especially evident. The company and its staff seek to align themselves with a mutual development plan.

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As the main factor contributing to its lasting success, TLW cites continuous improvement in quality and productivity. Its culture is shaped by strong blue memes. The organization operates according to certain norms that govern it. It is important to avoid bureaucracy and rework in administrative processes. Most processes are standardized; however, they require review as new communication channels are adopted and artificial intelligence is applied. Leadership was built around org charts and job descriptions, as well as the one-person view of management. TLW's blue and purple pattern was also filled with red memes.

From the owner to the supervisory line, leadership is based on authority. Orders and deliveries go to multiple entities. Team efforts are rewarded, but it would be advisable to assess their value from the employees' perspective. Leadership does not tolerate deviations from blue rules or purple habits.

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A healthy, albeit modest, dose of ecological values would help TLW foster a work climate that is generally perceived as pleasant. Orange, yellow, and aquamarine memes, on the other hand, were less evident. A look at the success of previous years highlighted it: it was based on the continuous improvement of traditional products, i.e., the standardization of processes according to norms. It is recommended to adopt an initiative rooted in incremental innovation.

A broad offering of orange memes in a culture ensures that an organization continues to want to improve. They are an important factor for successful innovation. Regarding the question of how companies drive the issue of innovation, two typical patterns can be distinguished: incremental innovation and radical innovation.

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The goal of incremental innovation is to offer the customer an optimized product or service in the future. An existing solution, in other words, is refined, while the core that defines the product or service remains unchanged. Offerings are gradually improved, but the market, customers, and competitors remain virtually the same.

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Radical innovation, on the other hand, starts from existing technologies. Such an initiative is proposed once the provisions of the proposed initiative have been fulfilled.

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  • Learnings: 

Next Steps What comes next? The current organizational chart does not accurately represent the true value exchange interactions within the company. Before integrating new communication channels such as an ERP or CRM, it is necessary to design the structure considering the findings of the present research (TLW Cultural Map).

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HR is more than just a department:

  • The last quarter-century has been focused on the customer. While that is not changing, there is now a firmer understanding that an employee-centered review is needed to balance the scales and provide better experiences to customers. It is recommended to invest in the success of human resources to attract, acquire, and retain talent, use human capital more efficiently, and think about the employee experience more holistically.

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Resignations will continue to be high:

  • Yes, we are in the midst of a banking crisis and on the brink of a recession, which will make it more likely for current employees to want to stay where they are, but that does not mean they will never resign. Some are doing so silently, and others are making it clear why they are leaving (like the employees who resigned in the first quarter of the year), but employee retention will continue to be a necessary priority in the face of a potentially unstable future. Increasing employee engagement, satisfaction, and improving their perception of the work-life balance offered by TLW should be solidified before investing in technology.

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Closing gaps between departments:

  • It may seem obvious, but friction-filled processes can contribute to employee burnout. It's time to review those long-standing processes that still exist only because no one has taken the time to update them. There is a general call for effectiveness over efficiency that is building across organizations. The easier it is for employees to achieve their goals, the higher employee morale will be. A redesign of interdepartmental processes is proposed.

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The End Result 

  • Result: 

A clear definition of the corporate culture to solidify in preparation for transitioning to Intelligent Business.

  • Summary: 

Context:

The study aims to understand the key touchpoints experienced by users working at TLW. Ethnographic tools will be used to follow the organizational structure as per the information flow and identify the type of cultural map prevalent within. Additionally, generative research techniques will be employed to better understand user experiences with the TLW Freight brand and the challenges and needs they face in their professional development within the company.

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Research Problem:

Lack of knowledge about the real dynamics within the company's organizational structure.

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Object of Study:

The current structure's form and the typology of the company's organizational culture as a brand. The goal is to show the company what dynamics will facilitate achieving its business objectives.

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UX Objectives:

  • Understand the information flow of the organization.

  • Assess the touchpoints of TLW employees' overall experience.

  • Diagnose the customer journey using engagement parameters.

  • Translate the diagnosis into the current cultural map of the organization.

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Success Metrics/KPIs:

Information intended to be gathered about users includes:

  • Self-perception of well-being.

  • Information flows.

  • Practices and customs of the population.

  • Population's values and beliefs.

  • Level of Engagement.

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Scales/Documents/Statistics to be used:

  1. Subjective well-being.

  2. Empathy map.

  3. Flow diagrams.

  4. Customer Journey with engagement scale.

  5. Organizational chart.

  6. Cultural map.

  7. Hermeneutical analysis of discourse.

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  • Outcome: 

Successfully mapped the organizational structure and cultural dynamics.
Potential areas for improvement include more in-depth employee engagement in future projects.

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  • Achievements: 

We managed to have the owner and all employees create a checklist of priorities for 2023 and to develop the action plan together, achieving greater commitment and involvement from everyone.

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2023 Priorities 

  1. Digitization of all processes and their documents.

  2. Prioritize communication in internal and external processes.

  3. Increase automation to enhance productivity (Automate).

  4. Technological scouting: AI for logistics and customer service (internal and external). a. Optimize routes using artificial intelligence.

  5. Implement a cybersecurity strategy.

  6. Implement a sustainability program.

  7. Innovation in the last mile (delivery).

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What I Did / Next Time I Would…

  • Role: 

Developed a comprehensive culture map and corporate culture diagnosis.

Provided strategic guidelines for 2023 planning.

Recommended improvements in communication, policy implementation, and employee engagement.

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  • Future Approach: 

In future projects, I would focus on even more personalized approaches to understand individual employee perspectives.

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Me and My Journey / New Skills Developed

  • Personal Reflection: 

It has been more than just a project; it has been a profound exploration of the very heart and soul of this remarkable company.

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Throughout this endeavor, I've witnessed not just the growth of a business, but the growth of a family. TLW is not just a logistics and transport company; it's a tight-knit community of individuals who share a common purpose. We've delved deep into the intricacies of its organizational structure and culture, uncovering hidden gems and areas for improvement.

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What strikes me most is the unwavering dedication of the TLW team. Their commitment to embracing change, to working towards a common mission, and to supporting one another is truly inspiring. It's a testament to the power of unity and shared values.

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As we move forward into 2023 and beyond, I'm filled with hope and optimism. The checklist of priorities we've collaboratively crafted is not just a document; it's a roadmap to a brighter future. The focus on digitization, communication, automation, and sustainability reflects a company that is not afraid to evolve and adapt.

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But beyond the strategic goals, it's the human element that resonates most with me. The idea of co-creating growth plans, fostering an environment of trust, and prioritizing the employee experience is not just a business strategy; it's a philosophy of putting people first.

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  • New Skills:

This project deepened my understanding of how organizational structures impact business and internal culture. 

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  1. Organizational Diagnosis: The designer gained expertise in conducting organizational diagnoses. This involves assessing the current structure, culture, and dynamics within the company. This skill is crucial for understanding the client's needs and challenges.

  2. Culture Mapping: The designer became proficient in creating cultural maps of organizations. This involves visualizing the prevailing values, beliefs, and behaviors within the company. Understanding and mapping culture is essential for driving cultural change and alignment.

  3. User-Centered Approach: The designer adopted a user-centered approach to the project, focusing on the needs and experiences of the employees (internal clients). This approach enhances empathy and ensures that solutions are tailored to meet user needs.

  4. Change Management: Managing change within an organization is a complex skill. The designer likely developed expertise in change management strategies, including how to communicate changes effectively and engage employees in the process.

  5. Strategic Planning: The project involved creating a checklist of priorities for 2023 and developing an action plan. This required strategic thinking and planning skills, as well as the ability to align organizational goals with the needs of the employees.

  6. Communication Skills: Effective communication is vital in any service design project. The designer likely improved their communication skills, both in conveying project findings and recommendations to the client and in facilitating communication within the organization.

  7. Research and Data Analysis: The project involved various research methods, including interviews and surveys. The designer developed skills in data collection and analysis to derive insights from research findings.

  8. Cultural Engineering: Understanding and influencing organizational culture is a specialized skill. The designer likely gained expertise in cultural engineering techniques, which can be used to shape and align culture with strategic goals.

  9. Employee Engagement: Fostering employee engagement is a key focus of the project. The designer likely learned strategies and techniques for enhancing employee engagement and satisfaction.

  10. Service Design Thinking: Service designers apply a specific mindset and set of principles to their work. This includes thinking holistically, considering all touchpoints, and designing for the overall service experience. The designer honed their service design thinking skills.

  11. Project Management: Successfully leading a project of this magnitude requires project management skills. The designer likely developed project planning, execution, and monitoring skills to ensure the project's success.

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Let's work together!

Enhancing people's experiences, one service at a time.

Contact me at monserratmoreno86@gmail.com

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